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PPC
production possibility curve
PPC other names
production possibility frontier / transformation curve
PPC meaning
a curve that shows the maximum combination a country can produce using all available resources
Inefficient output
inside curve, means a country is underutilising resources
Efficient output
on the curve, means a country is utilising resources efficiently
unattainable
outside curve, means a country is producing above available resources
movement along ppc
reallocation
shift in ppc
inward or outward movement of ppc
inward shift
caused by natural disasters, less tech, corruption, limited aid
outward shift
caused by improvement in education, access to aid, discovery of new resources
Note
Flashcard